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The Advanced X-wing was developed by engineers that, because of their allegiance with the Rebel Alliance, were forced to adopt a "develop more with less" policy, demonstrating the engineers' innovation. Likewise, because of this policy, the Rebel engineers often concentrated on making minute but consequential changes to their fighters.

The Advanced X-wing's development was owed largely to the success of the Z-95 Headhunter variant, the Heavy-95, as the engineers realized that wider bodies were good improvements to various concerns of starship performance. In large part because of this, the Advanced X-wing was supplied with similar modifications to its hull to the Heavy-95 before finalizing the latter fighter design. The improved heat-handling and increased mass capacity made the Advanced X-wing a better choice for X-wing pilots.

Several Advanced X-wing starfighters were awarded to Rebel agents for escorting and protecting representatives of the Civilian Protection Guild on Kashyyyk.